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South Carolina - Compensation & Benefit Legislation

SOUTH CAROLINA - AASHOWME

Demonstrates www.BenefitsReview.com™ site. Illustrates insurance carriers' coverages within the State.

SOUTH CAROLINA - ADOPTED CHILD HEALTH CARE MANDATE

OBRA 1993 (Federal) requires group health plans to honor medical and child support orders. Also, plans must treat adopted children like biological children covered by the plan, and plans are precluded from applying pre-existing condition exclusions to an adopted child where no such exclusion applies to a newborn biological child. Health plans that covered the cost of pediatric vaccines as of May 1, 1993, and fail to continue that level of coverage, will be subject to an excise tax penalty applicable to plans that fail to meet the health care continuation coverage requirements under OBRA 1993.

Mandatory coverage of birth of adopted children is included in state's newborn health care mandate.

Preventive care for children: No.

(South Carolina Code Ann. Sections 38-71-140, 38-71-780)

SOUTH CAROLINA - ALCOHOLISM & DRUG ABUSE

Employer option of coverage for alcohol and drug abuse and mental illness; benefits of $2,000 per year for total coverage.

Minimum lifetime coverage: $10,000. (South Carolina Code Ann. Section 38-71-71-737)

SOUTH CAROLINA - CAFETERIA PLAN TAX LAWS

State income tax, unemployment insurance tax on salary reduction: No. Follows FUTA.

SOUTH CAROLINA - CONTINUATION OF COVERAGE CONVERSIONS

Events Triggering Continuation of Coverage:

• Death: No.

• Job Termination: Yes, unless terminated for gross job misconduct. (To be eligible, employee must 6 months of continuous coverage prior to termination.)

• Reduction of Hours: No, unless reduction of hours terminates membership in the group.

• Divorce or Legal Separation: Yes. (Insurer cannot terminate coverage of former spouse unless provided in divorce decree.)

• Medicare Eligibility: No.

• Other Provisions: Termination of coverage for any other reason than non-payment.

• Early Termination of Continuation of Coverage: Becoming eligible for Medicare; becoming eligible for similar benefits, including coverage for pre-existing conditions under another group policy; failure to make a timely payment. (South Carolina Code Ann. Sections 38-71-170, 38-71-770).

SOUTH CAROLINA - COORDINATION OF BENEFITS

Requires use of the birthday rule if coordinating benefits. Based on 1986 National Association of Insurance Commissioner Rules model. (South Carolina Code Ann. Regs. 69-43)

SOUTH CAROLINA - COST-OF-LIVING

ERI's Relocation Assessor™ is a recommended source for U.S./Canadian cost-of-living data and U.S. Automobile Cost Survey.

SOUTH CAROLINA - DRUG TESTING AND EMPLOYEE ASSISTANCE BENEFITS

State has no statutory requirements.

SOUTH CAROLINA - GROUP HEALTH CODE ADDITIONS (MANDATED)

Adopted Children: Policies providing family coverage must cover adopted children as of the moment of birth if a decree of adoption is entered within 31 days of birth. (South Carolina Code Ann. Section 38-71-140.)

Coverage Continuation and Conversion: Group hospital, surgical, and medical policies must provide continuation rights for up to six months and subsequent conversion rights to employees terminating coverage for themselves and their dependents. Conversion rights must be provided to dependents ineligible due to age, and to divorced spouses. (South Carolina Code Ann. Sections 38-71-170, 38-71-360, 38-71-770.)

Genetic Information: Findings derived from genetic testing must not be treated as pre-existing conditions in the absence of a diagnosis of a condition related to information. (S288, 1997) (South Carolina Code Ann. Section 38071-840.)

Handicapped Dependents: Coverage for dependent children cannot be terminated while a child is incapable of employment due to mental retardation or physical handicap and chiefly dependent on the insured. (South Carolina Code Ann. Sections 38-71-350, 38-71-780.)

Maternity: Effective January 1, 1998, group health care providers, including HMOs must provide a mother and her newborn child with hospitalization care for at least 48 hours after a vaginal delivery (not including the day of delivery) and for at least 96 hours following a Caesarean section (not including the day of delivery.) An attending physician, in consultation with a mother, may request additional hospitalization time or may approve an early hospital discharge for the mother and the newborn child. (S288, 1997) (South Carolina Code Ann. Section 38-71-135.)

Mental Health: Group policies must provide a minimum psychiatric benefit of not less than $2,000 for each covered individual for each year with a lifetime maximum benefit of $10,000 per individual. (S288, 1997) (South Carolina Code Ann. Section 38-71-737(B).)

Newborns: Policies providing family coverage must provide benefits for newborns from the moment of birth for injury or sickness, including treatment of medically diagnosed congenital defects and birth abnormalities. (South Carolina Code Ann. Section 38-71-140.)

Policies for Small Employers: Policies for small employers must offer at least a basic and a standard health benefit plan to a small employer denied coverage on the basis of health status or claims experience, and prohibit the insurer from modifying a plan through use of a rider or endorsement or otherwise restricting or excluding coverage or benefits covered under the plan. Insurers may not discourage small employers from applying for coverage because of the health status, claims experience, industry, occupation, or geographic location of the small employer, or encourage the small employer to seek coverage from another insurer for such reasons. In addition, no small employer may induce or encourage an employer to exclude an employee from health coverage or benefits provided in connection with employment. Denial by a small employer insurer of an application for coverage must be in writing and state the reasons for the denial. Effective January 1, 1998, small employers are those which are actively engaged in business that, on at least 50 percent of its working days during the preceding calendar year, employed no more than 50 eligible employees or employed an average of not more than 50 employees or employed an average of not more than 50 employees on business days during the preceding calendar year and who employs at least one employee on the first day of the plan year. (S288, 1997) (South Carolina Code Ann. Section 38-71-920.)

Pre-existing Conditions: Health care policies must provide benefits, under pre-existing condition provisions, to individuals who meet necessary requirements as stated in the definition of the term. Pre-existing conditions are those for which prior medical advice or treatment has been received no more than 12 months before the effective date of an individual's coverage. (H3870, 1996) (South Carolina Code Ann. Section 38-17-730(4).)

Providers: Podiatrists, oral surgeons, and optometrists: Costs for services must be covered if the provider is licensed, the service is within the provider's scope of services, and the service is covered under the policy. (South Carolina Code Ann. Section 38-71-200.) Chiropractors: Insurers must make available coverage for services rendered by chiropractors. (South Carolina Code Ann. Section 38-71-210.)

Vision Care: Health care insurers, including HMOs, may provide both vision care benefits and medical eye care benefits. HMOs, however, must be authorized to contract with optometrists and ophthalmologists. (S200, 1997) (South Carolina Code Ann. Section 38-71-440.)

SOUTH CAROLINA - GROUP HEALTH FOR SMALL EMPLOYERS

For insurance plans offered to small employers:

• Eligibility Criteria: 2 - 50 employees.

• Restrictions on premiums: Yes.

• Restrictions on cancellation: Yes.

• Pre-existing Conditions: Conditions must be covered within 12 months of effective date of coverage.

• Other: Minimum outpatient and inpatient coverage under a basic or standard plan as offered by any approved health benefit plan. Insurers must offer a choice of at least two plans. Plans are not exempted from other insurance coverage laws. (South Carolina Code Ann. Sections 38-71-1310 et seq.)

SOUTH CAROLINA - GROUP LIFE CODE ADDITIONS

Employer required to pay part of premium: No.

Percent of employees who must elect coverage (if employees pay part of premium): No statutory requirement.

Percent of employees who must be covered if employer pays all of premium: No statutory requirement.

Minimum number of employees in group plan: 2.

Employer prohibited as beneficiary: No.

Grace period (days): 31.

Mandatory conversion: Yes.

Other provisions: None.

(South Carolina Code Ann. Sections 38-65-40, 38-65-210)

SOUTH CAROLINA - HOLIDAYS

January 1, Washington's Birthday (or 3rd Monday in February), Memorial Day (or last Monday in May), July 4, Labor Day (or 1st Monday in September), Veterans Day, and December 25 are state holidays in all 50 states and in the District of Columbia. Other holidays under State law include: Martin Luther King's birthday (or 3rd Monday in January), Thanksgiving. Other: If a legal holiday falls on Sunday, following Monday is a holiday; if holiday falls on Saturday, preceding Friday is a holiday. (South Carolina Code Ann. Sections 53-3-10, 53-3-90, 53-5-10, 53-5-30)

SOUTH CAROLINA - IMMIGRATION (PREVAILING WAGE POLICY)

See U.S. Federal General Administrative Letter 1-2000

SOUTH CAROLINA - JURY DUTY & WITNESS TIME OFF

Employer Restriction For Discharging Employee For Taking Leave For Jury Service: Yes.

Remedies and Penalties: Dismissed employee may bring civil action for damages not to exceed 1 year's salary. Demoted employee may bring civil action for damages not to exceed difference for 1 year between original and new lower salary.

Other Requirements: None reported. (South Carolina Code Ann. 41-1-70.)

Employer Restriction For Discharging Employee For Taking Leave to be a Witness: Yes.

Remedies and Penalties: Dismissed employee may bring civil action for damages not to exceed 1 year's salary. Demoted employee may bring civil action for damages not to exceed difference for 1 year between original and new lower salary.

Other Requirements: Must be in response to a valid subpoena.

SOUTH CAROLINA - LEAVES OF ABSENCE

Employers Subject to Leave Laws: State employers.

Criteria for Eligibility: Full time employees with accrued sick leave. Leave accrues at rate of 15 days per year. Up to 180 days may be carried over to next year.

Maximum length of leave: Statutory limits of 8 days to care for family member; 6 weeks for adoption of a child.

Paid Leave: State requires paid leave.

Acceptable Reasons for Leave: Sickness of employee or family member; adoption of child where employee is primarily responsible for child's care.

Employment Guarantees After Leave: State reports no statutory requirements.

Use of Vacation or other Time-off Benefits: State reports no statutory requirements.

Certification Required: State reports no statutory requirements.

Effect Of Leave on Other Benefits: State reports no statutory requirements.

Effect of Seniority Accrual During Leave: State reports no statutory requirements.

Minimum Requirements for Notification to Employer: State reports no statutory requirements.

Conditions for Denial of a Request For Leave: State reports no statutory requirements.

(South Carolina Code Ann. Sections 8-11-40, 8-11-155.)

See U.S. Federal Family and Medical Leave Act

SOUTH CAROLINA - LONG TERM DISABILITY CODE ADDITIONS

State does not require employer to provide long term disability benefits; although many employers do in order to remain competitive in hiring/retention of employees.

See LEAVES OF ABSENCE (above), WORKERS' COMPENSATION (below) and U.S. Federal Americans With Disabilities Act

SOUTH CAROLINA - MANDATED PROVIDERS

Optometrists, chiropractors, psychologists, podiatrists, and social workers. Mandatory coverage for oral surgeons. (South Carolina Code Ann. Sections 38-71-200, 38-71-210)

SOUTH CAROLINA - MENTAL HEALTH CARE

Employer option of coverage for alcohol and drug abuse and mental illness; benefits of $2,000 per year for total coverage.

Minimum lifetime coverage: $10,000. (South Carolina Code Ann. Section 38-71-737)

SOUTH CAROLINA - MINIMUM WAGE

Refer to the Federal minimum wage: $5.15 per hour (effective September 1, 1997).

State reports no statutory requirements.

See U.S. Minimum Wage

SOUTH CAROLINA - NEW HIRE REPORTING

Who is required to report: All employers.

Who must be reported: New employees and rehires.

Exempt from reporting: No exemptions.

Form(s) to file: W-4 form or equivalent.

Filing deadline: Within 20 days of hire.

Employer information to be included: Name, address, and EIN.

Employee information to be included: Name, address, and SSN.

Penalty for failure to report: $25 for the second offense and every offense thereafter unless the employer can demonstrate good cause for failure. $500 for each failure to report resulting from a conspiracy between employer and employee.

(South Carolina Code Ann. Section 43-5-598)

SOUTH CAROLINA - NEWBORN CARE MANDATE

Mandated coverage.

Preventive care for children: No. (South Carolina Code Ann. Sections 38-71-140, 38-71-780)

SOUTH CAROLINA - OVERTIME COMPENSATION REQUIREMENTS

 State reports no statutory requirements.

SOUTH CAROLINA - PARENTAL LEAVE

See U.S. Federal Family and Medical Leave Act

SOUTH CAROLINA - PRE-EXISTING CONDITIONS

For insurance plans offered to small employers, pre-existing conditions must be covered within 12 months. (South Carolina Code Ann. Sections 38-1-71-1310 et seq.)

See U.S. Federal Health Insurance Portability & Accountability Act

SOUTH CAROLINA - PROTECTED CLASSIFICATIONS

Age:  Yes, age 40 and over.

Race:   Yes.

Color:   Yes.

National Origin:  Yes.

Ancestry:   No specific law. State has expressed policy against discrimination.

Religion:   Yes.

Sex:  Yes.

Pregnancy:  Yes.

Sexual Harassment:  No specific law. State has expressed policy against discrimination.

(S.C. Code Ann. Sections 1-13-20, 1-13-30, 1-13-80.)

SOUTH CAROLINA - SALARY SURVEY

ERI's Relocation Assessor™ is a recommended source for U.S./Canadian wages & salaries (covering 3,000 positions).

SOUTH CAROLINA - SHORT TERM DISABILITY CODE ADDITIONS

State does not require employer or employee participation in short term disability plans.

SOUTH CAROLINA - TERMINATION & SEVERANCE PAY

Date pay is due if employee is discharged: Earlier of payday or within 48 hours.

Date due if employee resigns: Earlier of payday or within 48 hours.

Wages: Yes.

Vacation Pay: Yes.

Holiday: Yes.

Sick leave: Yes.

Severance: No.

(South Carolina Code Ann. Sections 41-10-10, 41-10-50)

SOUTH CAROLINA - UNEMPLOYMENT TAX

Employer Contributions:

• Tax Rate (%):      

• Standard: 5.4

• Maximum: 5.4

• Minimum: 1.3

Voluntary Contribution Provision: Yes, although not to obtain a lower rate.

(South Carolina Code Ann. Sections 41-29-150, 41-31-10, 41-31-50.)

SOUTH CAROLINA - VACATION PAY

See TERMINATION & SEVERANCE PAY (above)

SOUTH CAROLINA - VOTING TIME OFF

State reports no statutory requirements.

SOUTH CAROLINA - WORKERS' COMPENSATION

Private Employers: Mandatory as to all employers of 4 or more employees, including active partners and sole proprietors whose employees are eligible for benefits.

Public Employers: Mandatory coverage to all public employments (Note: Department of Parole and Community Corrections may elect coverage for convicted persons performing community service or participating in a work program.) except elective and appointive officials. Coverage extended to members of the State and National Guard.

Exceptions: Casual employees, persons engaged in selling agricultural products, farm labor, railroads, express companies, state and county fair associations, employer with annual payroll under $3,000 and licensed real estate agents who are independent contractors, working on straight commission and working for a broker.

Special Coverage Provisions: Voluntary as to excluded payments.

(U.S. Chamber of Commerce, 1994 Analysis of Workers' Compensation Laws.)